Title page for etd-0020117-102521


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URN etd-0020117-102521
Author Helene Festal
Author's Email Address No Public.
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Department Master of Business Administration Program in International Business
Year 2016
Semester 2
Degree Master
Type of Document
Language English
Title Cultural Factors and the Success of Cross-border Mergers and Acquisitions: What is the Impact of the Negotiation Stage?
Date of Defense 2016-11-03
Page Count 145
Keyword
  • negotiation process
  • Ghauri framework
  • cultural differences
  • international negotiations
  • Cross-border mergers and acquisitions
  • Abstract Over the last three decades, mergers and acquisitions (M&A) have been an increasing popular business practice to the extent of dominating world economy scene. This boom contrasts with a high rate of failure and dissatisfaction. A myriad of scholars investigated on the factors causing these failures during the post-merger integration process. While they debate on whether culture positively or negatively impacts the post-merger stage, the role of negotiation in the outcome of the M&A is quite overlooked. Thus, cross-border mergers and acquisitions were analysed within the scope of international negotiations to determine whether the negotiation stage has an impact on their success.
    Ghauri framework (2003) provides an excellent foundation to build upon and apply a unique international negotiation. The model embraces a lot of the negotiation’s aspects and would therefore help to come with a comprehensive analysis of M&A negotiations. Nevertheless, the model is not universally applied to all international negotiations. Hence, it has been critiqued and supported by other academics. In the light of both a literature review and a qualitative study, several answers were given on what role the negotiation stage plays in the success of transnational M&As.
    The crucial role of the pre-negotiation stage can be highlighted. This time-consuming phase sets the prerequisites of an M&A success: buying at a targeted price under terms that encompass as much risks as possible. It is a two-fold stage: while the due diligence part is very technical, the relationship building requires a lot more psychology and cultural adaptability. Should these prerequisites be met, the negotiation process can bode for successful M&As.
    Over the past century, the United States elaborated a negotiation model to become the most efficient and successful possible in M&A deals. Under the Anglo-Saxon influence on the business world, the model spread over other developed countries and is now reaching emerging countries. If this standardisation of the process is slightly erasing cultural specificities in the negotiation style, this model does not adapt to very different cultures and cannot overcome major environmental issues which might dramatically hinder negotiations. Thus, adding an international dimension to this already complex process results in a more expensive and time-consuming transaction and increases risks.
    Advisory Committee
  • Hsing-Er Lin - chair
  • Badreddine Msolli - co-chair
  • Chao-Hsien Sung - co-chair
  • Shih-Chieh Hsu - co-chair
  • Jessica Fouilloux - advisor
  • Shih-Chieh Hsu - advisor
  • Files
  • etd-0020117-102521.pdf
  • Indicate in-campus at 99 year and off-campus access at 99 year.
    Date of Submission 2017-03-17

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